Fannie Mae Sharply Raises 2027 Mortgage Rate Forecast

Is there any relief coming next year for mortgage rates? According to Fannie Mae’s new 2027 mortgage rate prediction…it’s not looking too good. Previous mortgage rate forecasts predicted 6.7% rates throughout 2027. But with inflation running rampant again, a low-rate future looks less and less likely.

It’s already getting cold, and the housing market is starting to freeze in more ways than one. The latest inflation numbers were an unpleasant surprise—hotter-than-expected CPI (Consumer Price Index) and producer prices rising beyond expectations. The result? Higher mortgage rates, arguably locked in for longer. And the Fed can’t fix this one.

Buyers are dropping off in major markets, but sellers aren’t seeing it clearly. With inventory down, some sellers are getting hopeful that there are fewer houses to choose from…but not when pending sales are down double digits. Finally, we’ll touch on the housing market crash that already happened, and how everyone missed it.

In This Episode We Cover

Newest inflation numbers and whether they will force something to “break”

Fannie Mae’s updated mortgage rate forecast (any hope for lower rates?)

Sellers are getting the wrong signals: Why declining inventory may not be a good thing for them

The housing market collapse that already happened (and almost nobody noticed)

Go give someone a big tip this week; it’s getting hard out there for average Americans!

And So Much More!

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